Oil prices sink on inflation fears, sending Canadian crude prices tumbling to new lows

Oil prices sink on inflation fears, sending Canadian crude prices tumbling to new lows

Today's energy market action:

  • Rising rates, inflation fears and a tepid Q3 earnings outlook spooked global equity markets today, taking oil prices and most commodities lower. The TSX declined 2.1% while the S&P 500 fell 3.3%, as investors shifted into defensive mode. Short term bond yields (1-year) rose again today, hitting a 10-year high of 2.67%.

  • Hurricane Michael has now taken 720,000 bbl/day of oil and 812 MMcf/day of natural gas offline, as it moved into Florida today. Onshore refineries in the USGC were not affected by the massive storm, but several offloading marine terminals ceased operations for the day. Over the past three days, 1.7 million barrels of crude has been shut-in.

  • The American Petroleum Institute is forecasting a 9.75 million barrel build in US crude inventories. Official numbers from the EIA are due to be released tomorrow morning.

  • Brent and WTI both sank over 2% today, but Canadian crude prices took a much bigger hit as discounts continue to widen. Canadian Light fell 7%, falling to a 52-week low. WCS tanked 9%, falling below US$30 for the first time in almost two years.

  • The TSX and SPX energy sectors both declined about 3.6%, with E&Ps leading to the downside.

Today's market movers:

  • Parkland Fuel (PKI.TO +5.0%) acquired a 75% stake in privately-held SOL Investments for $1.6 billion, expanding its footprint in the US Gulf Coast, Atlantic region and Caribbean. The deal will see the addition of 526 retail gas stations. The company will also retain the option to buy the remaining 25% at a pre-determined price. PKI hit an record high during the day.

  • Obsidian Energy (OBE.TO -1.7%) says it's on track to deliver "meaningful 2019 light oil production growth" from its Willesden Green Cardium program, which should result in “competitive economic returns." The company will hold its Investor Day meeting on November 15, 2018.

  • Secure Energy Services (SES.TO -3.8%) announced the start-up of its light oil feeder pipeline system and receipt terminal in the Kindersley-Kerrobert region of Saskatchewan. The company says the project was delivered on time and on budget.

  • International Petroleum (IPCO.TO -12.8%) has agreed to acquire BlackPearl Resources (PXX.TO +8.5%) in an all-stock transaction priced at $1.85 a share. PXX shareholders will receive 0.22 IPC shares for each share they own. IPC is a subsidiary of Lundin Group.

  • Chevron (CVX -3.3%) transferred its last stake in an exploration license back to the government of Norway, effectively exiting the Norwegian Continental Shelf.

  • A consortium led by Talos Energy (TALO -4.0%) is looking to partner with state-owned Pemex to potentially develop the offshore Zama project, estimated to hold as much as 2 billion barrels of oil.

  • Goldman Sachs added Kinder Morgan (KMI -3.1%) to its Conviction Buy List with a price target of US$24.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$83.09▼2.255.62
 
86.29
WTI$73.17▼2.449.29
 
76.41
CDN LT$45.26▼7.145.26
 
69.32
C5+$65.44▼2.751.08
 
71.40
WCS$29.61▼8.829.61
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 10   █ OCT 3   █ SEP 26   █ SEP 19   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS
ENERGY SUB-SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • Parkland Fuel (PKI +5%)
  • Altagas (ALA +1.9%)
  • 12-MO HIGHS
  • Parkland Fuel (PKI +5%)
  • 10-YR HIGHS
  • Parkland Fuel (PKI +5%)
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Trican Well (TCW -7.5%)
  • Baytex Energy (BTE -7.5%)
  • Encana (ECA -6.3%)
  • Crescent Point (CPG -6.1%)
  • Cenovus Energy (CVE -5.8%)
  • 12-MO LOWS
  • CES Energy Solutions (CEU -4.5%)
  • Freehold Royalties (FRU -1.7%)
  • PrairieSky (PSK -4.7%)
  • Trican Well (TCW -7.5%)
  • Whitecap Resources (WCP -5.3%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU48.80▼-3.240.49
     
    55.4760D   W
    Imperial OilIMO42.83▼-2.933.43
     
    44.9194D   W
    Husky EnergyHSE20.45▼-2.815.09
     
    22.9984D   W
    MIDSTREAM
    EnbridgeENB42.61▼-2.337.36
     
    52.0968D   W
    TransCanadaTRP52.60▼-0.650.28
     
    65.1846D   W
    Pembina PipelinePPL44.11▼-2.637.60
     
    47.8487D   W
    Inter PipelineIPL21.99▼-1.421.36
     
    27.9230D   W
    Keyera KEY34.51▼-1.331.20
     
    39.3156D   W
    Gibson EnergyGEI21.18▼-1.515.68
     
    21.6497↑D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ39.12▼-3.036.88
     
    49.0819D   W
    EncanaECA15.30▼-6.312.37
     
    18.5439↓D   W
    Cenovus EnergyCVE12.11▼-5.89.03
     
    14.8445D   W
    TourmalineTOU22.30▼-4.717.78
     
    27.2668D   W
    Seven GenerationsVII15.85▼-3.713.62
     
    21.2561D   W
    SERVICES
    ShawcorSCL24.19▼-2.323.60
     
    30.1030D   W
    Pason SystemsPSI20.82▼-0.116.05
     
    22.1093↑D   W
    Mullen Group MTL15.17▼-2.514.10
     
    17.1263D   W
    EnerflexEFX16.82▼-2.413.55
     
    18.5992D   W
    Secure EnergySES8.34▼-3.86.98
     
    9.8286D   W
    REFINING & MARKETING
    Parkland FuelPKI44.30▲5.023.41
     
    45.4998D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • None
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Marathon Oil (MRO -7.7%)
  • Hess Corp (HES -7.4%)
  • Apache (APA -5.9%)
  • National-Oilwell Varco (NOV -5.7%)
  • Devon Energy (DVN -5.6%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM84.52▼-2.372.16
     
    89.3082D   W
    ChevronCVX122.60▼-3.4108.02
     
    133.8872D   W
    MIDSTREAM
    Kinder MorganKMI18.00▼-3.014.69
     
    19.8387D   W
    Williams CoWMB27.20▼-1.624.00
     
    33.6759D   W
    ONEOKOKE67.31▼-2.149.65
     
    71.9986↑D   W
    LARGE CAP E&P
    ConocoPhillipsCOP75.09▼-5.448.89
     
    80.2494D   W
    EOG ResourcesEOG126.47▼-4.495.36
     
    133.5392D   W
    Occidental PetroleumOXY77.92▼-5.262.47
     
    87.6767D   W
    Anadarko PetroleumAPC68.00▼-3.746.75
     
    76.7085D   W
    Concho ResourcesCXO153.16▼-4.3123.63
     
    163.1181D   W
    SERVICES
    SchlumbergerSLB60.82▼-3.659.25
     
    80.3530D   W
    HalliburtonHAL40.64▼-3.635.75
     
    57.8624D   W
    National-Oilwell VarcoNOV42.87▼-5.731.47
     
    49.0861D   W
    TechnipFMCFTI30.37▼-1.724.53
     
    35.0047D   W
    Baker HughesBHGE31.92▼-2.225.53
     
    37.7646D   W
    REFINERS
    Phillips 66PSX113.05▼-3.989.14
     
    123.9776D   W
    Valero EnergyVLO110.84▼-4.275.84
     
    126.9870↓D   W
    Marathon PetroleumMPC80.65▼-3.755.68
     
    88.4577D   W
    HollyFrontierHFC65.88▼-4.135.49
     
    83.2882↓D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A66.93▼-2.060.43
     
    73.8663D   W
    TotalTOT63.03▼-0.353.37
     
    65.6978D   W
    BPBP45.15▼-1.936.15
     
    47.8381D   W
    EniE37.05▼-0.931.58
     
    40.1563D   W
    EquinorEQNR27.48▼-2.719.74
     
    28.9388D   W
    ANALYST RATINGS

    UPGRADES

    • TechnipFMC (FTI): Upgraded from Hold to Buy at Societe Generale.

    DOWNGRADES

    • MEG Energy (MEG.TO): Downgraded from Outperform to Sector Perform at National Bank.

    • Pioneer Natural Resources (PXD): Downgraded from Buy to Neutral at Seaport Global Securities.


    UPDATED: DAILY (END-OF-DAY)

    SOURCES:
    • OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
    • EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
    • CHARTPACKS COURTESY STOCKCHARTS.COM

    NOTES:
    • OIL PRICES, FUTURES AND DIFFERENTIALS IN USD/BBL
    • C5+ = EDMONTON CONDENSATE
    • FUTURES CURVES SHOW PRICES FOR NEAR-MONTH CONTRACT (C1) AND NEXT 5-MONTHS (C2-C6)
    • TSX SHARE PRICES IN CAD; S&P 500 PRICES IN USD
    • ADR: AMERICAN DEPOSITORY RECEIPTS LISTED ON NYSE IN USD
    • SHARE PRICE CHANGES (INCL. NEW HIGHS & LOWS) EXCLUDE DIVIDENDS

    RANK:
    • BASED ON STOCKCHARTS TECHNICAL RANK (SCTR)
    • REFLECTS RELATIVE STRENGTH AMONG OTHER ENERGY STOCKS (PERCENTILE RANKING)
    • RISING RANK (↑) REFLECTS INCREASING RELATIVE STRENGTH
    • FALLING RANK (↓) REFLECTS DECREASING RELATIVE STRENGTH.
    Market meltdown continues as WCS discount to WTI hits another all-time high

    Market meltdown continues as WCS discount to WTI hits another all-time high

    Oil prices rebound as Hurricane Michael takes more GoM production offline

    Oil prices rebound as Hurricane Michael takes more GoM production offline

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